What Does It Mean If the Discriminant Function Is Estimated

question 24

Multiple Choice

What does it mean if the discriminant function is estimated and the square of the canonical correlation is .64?

• A) The null hypothesis is not rejected. Therefore, there is no significant discrimination between groups.
• B) 64% of the variance in the dependent variable is explained by the model.
• C) 64% of the explained variance is accounted for.
• D) B and C are correct.

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Definitions:

Unemployment

Occurs when individuals who are actively seeking work are unable to find employment. It is typically measured as a percentage of the labor force.

Supply Shocks

Unexpected events that suddenly change the supply of a good or service, potentially leading to rapid price changes.

Short-Run Phillips Curve

A curve that illustrates the inverse relationship between the rate of inflation and the unemployment rate in the short term, suggesting that lower unemployment comes with higher inflation.

Long-Run Phillips Curve

A concept suggesting that in the long term, there is no trade-off between inflation and unemployment, as opposed to the short-run Phillips curve.